REG - Nativo Resources Plc - Financing Update & Issue of Equity

Nativo ResourcesAnnouncement

07/04/2025 07:00

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RNS Number : 8870D  Nativo Resources Plc  07 April 2025

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.

 

7 April 2025

Nativo Resources Plc

 

("Nativo" or the "Company")

 

Financing Update

&

Issue of Equity

Nativo Resources plc (LON:NTVO), which has interests in gold mines in Peru,
provides the following update on operations and business funding.

 

As previously announced, during Q1 2025, the Company has successfully advanced
its business plan, signing an option agreement via the Company's 50%-owned
Peruvian joint venture Boku Resources SAC ("Boku"), pursuant to which Boku
will evaluate the opportunity to recover and sell gold and silver from the
Toma La Mano tailings dump and redeposit the tailings in line with
legislation, as announced on 6 March 2025. The Company is now seeking to
accelerate Toma La Mano by undertaking a feasibility study and has identified
other suitable tailings dumps in northern Peru from historical or ongoing
polymetallic mining which contain gold and silver, for which additional
capital will be required.

 

In line with the Company's previously stated intentions of raising further
capital, the Company is  pleased to announce that it has entered into a
subscription agreement ("Subscription Agreement") with its Joint Broker,
Peterhouse Capital Ltd ("Peterhouse"), dated 4 April 2025, pursuant to which
the Company will issue and Peterhouse will subscribe for 12,000,000 ordinary
shares of 0.15p in the Company at par value ("Subscription Shares")
representing 19.37% of the Company's share capital as enlarged by the issue of
the Subscription Shares. The Subscription Shares will be issued to Peterhouse
to offset fees owed to it by the Company. Pursuant to the Subscription
Agreement, Peterhouse has undertaken to use its reasonable endeavours to place
the relevant Subscription Shares and to pay Nativo 95% of the gross proceeds
of any such sales. Such proceeds are then to be applied to working capital and
the implementation of the Company's business strategy, as part of its initial
financing strategy. It should be noted there is no certainty that Peterhouse
will be able to place the Subscription Shares into the market, or at what
price. The quantum and timing of the availability of these funds are therefore
uncertain.

 

In addition, the Company is in discussions with a number of other potential
providers of finance. In the meantime, the Company's working capital position
remains tight, and the Directors are carefully managing the Company's
cashflows and creditors. The Company will need to raise further funds by early
May in order to continue as a going concern. There can be no certainty at this
stage as to the likelihood of success or the timing of these fundraising
efforts.

 

In line with the Boards's near-term strategic goal of reducing Nativo's debt,
the Board is increasingly confident that it will shortly reach an agreement to
restructure its long-term debt with the holders of its €10 million Euro
bond. Although there can be no certainty on the timing or achievability of
such an agreement, the Board is committed to achieving a solution to this
matter in a manner which is demonstrably beneficial for all Nativo's
stakeholders.

 

Certain directors of Nativo intend to either convert unpaid salary or fees
owing into shares in the Company and/or subscribe for further shares. Due to
the ongoing discussions on further funding noted above, they are currently not
permitted to do so. A further RNS will be made in due course regarding certain
PDMR dealings, once it is appropriate to do so.

 

Stephen Birrell, Chief Executive Officer, commented:

"We are currently advancing through what the Board believes is an 18-month
investment cycle to initiate production at the gold mines, establish a gold
ore processing plant, and develop a large-scale tailings cleaning plant. With
gold breaching the $3,100 per ounce, the Directors believe the business plan
is exciting and are pleased with the reception of Euro bond holders to the
concept of restructuring the debt.

Once concluded, our funding efforts will help us continue our business plan
with our goal being to create substantial value from gold mining and
processing activities in Peru."

Admission and Total Voting Rights

 

Application has been made for the Subscription Shares to be admitted to
trading on AIM ("Admission"). It is expected that Admission will become
effective, and dealings will commence at 8.00 a.m. on or around 11 April 2025.
The Subscription Shares will rank pari passu with the ordinary shares of the
Company in issue.

 

Following Admission, the total number of ordinary shares in the capital of the
Company in issue will be 61,957,263 with voting rights. This figure may be
used by shareholders as the denominator for the calculations by which they
will determine if they are required to notify their interest in, or a change
to their interest in, the Company's share capital pursuant to (i) the
Company's Articles, (ii) the Financial Conduct Authority's Disclosure Guidance
and Transparency Rules and/or (iii) the AIM Rules for Companies issued by the
London Stock Exchange plc as amended from time to time.

 

For further information please contact:

 

 Nativo Resources                           Via Vigo Consulting

 Stephen Birrell, Chief Executive Officer   nativo@vigoconsulting.com (mailto:nativo@vigoconsulting.com)

 Zeus (Nominated Adviser and Joint Broker)  Tel: +44 (0)20 3829 5000

 James Joyce

 James Bavister

 Peterhouse Capital limited (Joint Broker)  Tel: +44 (0)20 7469 0930

 Duncan Vasey

 Lucy Williams

Rose Greensmith

 Vigo Consulting (Investor Relations)       Tel: +44 (0)20 7390 0234

 Ben Simons                                 nativo@vigoconsulting.com (mailto:nativo@vigoconsulting.com)

 Peter Jacob

Anna Sutton

 

About Nativo Resources plc

 

Nativo has interests in gold mining and exploration projects in Peru. Through
a 50:50 joint venture established in July 2024 with an experienced local
partner ("Boku"), Nativo secured an opportunity to scale operations at the
Tesoro Gold Concession, owning 50% of the production and resources. Production
and sales of ore to a local gold ore processing plant began in late December
2024.

 

In December 2024, Nativo also agreed to acquire directly a 100% interest in
the Morrocota Gold Mine, proximal to the Tesoro Gold Concession. Production
from Morrocota is anticipated to commence by early Q3 2025. Longer-term, the
Company plans to establish its own gold ore processing plant to retain a
higher margin from production at its mines.

 

In March 2025, Boku secured an option agreement to evaluate the opportunity to
recover and sell gold and silver from the Toma La Mano tailings dump in the
Ancash region and redeposit the tailings in line with legislation. The Company
is investigating other similar regional tailings opportunities.

 

Follow us on social media:

 

LinkedIn: https://uk.linkedin.com/company/nativoresources-plc
(https://uk.linkedin.com/company/nativoresources-plc)

X (Twitter): https://x.com/nativoresources (https://x.com/nativoresources)

 

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